February 3, 2009 7:25 pm

Save, Spend, Income…

Interesting to see the news clips that are contradicting although some are internally supporting the reasons. It is like a saying we have in Kannada “haavu saaybeku kolu muribardhu” translate “kill the snake without breaking the stick” ; understood this saying might not be exactly related the situation we have, but it looks like Economy is expecting the people to spend when there are more and more people filing for unemployment, bankruptcies, going through layoffs and having trouble to make their ends meet to pay the bills at the moment.

I recently heard a debate on radio about about whether to pay stimulus to people or not pay but use that money for other projects to improve economy. someone said, even if people get the stimulus at this moment, it would either be saved or used to pay their bills and not necessarily spend at this point of time. so these are like ripple effects, one getting affected causes the chain of impacts all over.